Half of India’s coal-fired power plants face critically low fuel stocks

India's 191 coal-fired power plants are grappling with critically low fuel stocks, according to government data. As of October 19, 96 plants were operating with supplies that could only generate electricity for less than three days, up from 60 plants in mid-September. Despite the Central Electricity Authority reporting an increase in coal supplies, the shortages persist.

The Central government's coal ministry has been ramping up coal supplies to power plants, but the situation remains dire. India's total coal stocks at power stations have declined by around 5% since the start of the month. Daily peak electricity demand is running 45 gigawatts to 50 GW higher than last year, driven by hotter-than-usual weather and a weaker monsoon, which reduced hydroelectric output and increased reliance on thermal plants.

In September, the gap between India's power demand and supply widened to 560 million kilowatt-hours, the highest since August 2023. While coal-fired generation rose 13.3% in September, hydropower fell 20% from the previous year. India generates nearly 55% of its power from non-fossil-based sources, but the lack of battery storage is pushing the country to rely on coal-based power during peak demand periods.